Local governments have a special place in the democratic system of governance with society and the state.This place is defined primarily by the fact that the presence of local authorities makes this system of governance is most suitable for ensuring the interests of the population in the field, taking into account historical and other local traditions."In the system of public administration, local self-government acts in the form of a special subsystem with its management objects, competence, procedures and forms of organization, material and financial support, staff activity technology and other elements.But this subsystem, which is" bottom " connected with the population - the carrier and the source of power, including in relation to higher levels, and "top" - with public authorities.This preserves the system of the state, the system of society and the system of public administration» [1] .No matter how all the organs of the uniform public authority  belonging to the people are divided on the   functions, powers and professionalism, all of them are ultimately intended to regulate social relations and processes, influence in different ways the consciousness, behavior and activities of people and their groups, i.e. manage.Another matter, that forms and methods, the scale of the and the depth of their influence varied.

The question about the ratio and interaction of local self - government and state power-one of the cardinal in the theory and practice of municipal construction and law.Thesolutionofthisproblemisbasedontheconstitutionalprinciplethatnotenteringlocalgovernmentsintothesystemofpublicauthorities.Therefore, the emphasis is now shifting from the Central state leadership, direct state influence on the activities of local governments to the decentralization of power, legal regulation, state support for local self-government.

The fact that authority of  local self-government  are not part of the system of public authorities does not mean that local self-government is autonomous from the state and opposes it.This principle does not mean freedom within it.Cos  local self-government develops on the basis and in accordance with the laws of the state, in state support and state guarantees.

Society and citizens should be directly involved in public decision-making and implementation.Through the bodies of local self-government, it is necessary to provide the population with a real opportunity to solve issues of local importance independently and responsibly.

The problem of the formation of local self - government is a strategic task of our state.We have studied the world practice of forming the foundations of local self-government.This allowed us to present the principles of the organization of economic independence of local governments, taking into account the European Charter of local self-government[2].

Analysis of the implementation of the principles of transparency and openness in the activities of the authorities of foreign countries indicates that the greatest success is achieved by those states that approach the issue systematically.In this case, the reforms are not an eclectic pile of activities, but an interconnected set of actions United by a single idea.

In Kazakhstan within work on differentiation of functions and powers between levels of government the list of the functions assigned to rural, settlement, city (district value) levels of government, with the subsequent transfer to local governments extends:

- organization of work on improvement, gardening and sanitary cleaning of settlements;

- organization of public works on keeping cemeteries and other burial places in proper condition;

- monitoring of fire safety and water safety;

- organization of work on water supply of settlements, regulation of water and land use issues;

- management of communal property transferred to the akimat's of the relevant administrative-territorial units in the manner prescribed by law.

When considering the allocation of rural, settlement, city (district) levels of public administration, independent budgets should be taken into accountthe fact that 78% of district and city budgets are subvention, which, of course, compounded by the lower level management.

Therefore, it is necessary to gradually expand the powers of rural akims in making decisions in the economic and social spheres, in addressing the use of available local resources - land, property, real promotion of small and medium-sized businesses.

The goal of the paramount agency of state administration is to form a new type of government in the form of local self-government.It must meet the new challenges of serving society and strengthening statehood. Credentials of agency's domination will be backed by financial and human resources. The society and citizens should be directly involved in the process of making state decisions and implementing them.Through local self-government organs, it is necessary to provide the population with a real opportunity to resolve issues of local importance independently and responsibly.The effectiveness of local government largely depends not only on the availability of the entire complex of necessary laws that provide legal,organizational and economic basis of self-government, but also from the people's understanding of their rights and opportunities in the system of local self-government,from the actual ability to realize local self-government.

As one of the options for allocating these levels of management to independent budgets, the formation of the revenue side of rural, settlement, city (district) budgets will be made through transfers provided for in district (city) budgets to finance their expenditures.

An important indicator in determining the significance of local self-government bodies is the fact that the population will directly participate in their activities.To ensure the effective functioning of local self-government and the livelihood of the population, local governments should be endowed with an appropriate volume of material and financial resources.

This will give a new impetus to the socio-economic development of the country and the formation of a full-fledged civil society, will allow to implement constitutional norms, create legislative bases for the organization and activities of local self-government, carry out real reforms in the sphere of democratization of power, increase the role of the population in addressing local issues, create conditions for direct participation of the population in public administration, to reduce the level of manifestations of bureaucracy and corruption.

At this stage of development of local self-government in our country, it is necessary to form an effective organizational, financial and personnel system that is most acceptable for Kazakhstan to support the activities of local self-government agencies, as well as the mechanism of interaction with state organs.Given the positive foreign experience, it is necessary to develop measures to improve local self-government in Kazakhstan, taking into account the state structure of the country, regional specifics (large territory, low population density, considerable distance between compact population groups), past experience of domestic history, which has accumulated a lot of useful in the field of rural self-government, local traditions and culture, economic and other conditions.The reform and development of the system of local self-government should continue from the grass-roots levels - the rural district, the village and the district in the city.

The process of realization the policy of local self-government development in Kazakhstan is characterized by the complexity, the stage-by-stage solution of the tasks set, and the need to determine the priority policy directions at the appropriate stage of implementation.

It's time for citizens to get actively involved in resolving pressing issues on the ground, to monitor the work of local state agencies. We must follow the civilized way, along with the whole world and take a course toward further democratization of society. "

In program "The plan of the nation - 100 concrete steps" 97, 98 steps are devoted to the place of self-government:

97. Empowering citizens to participate in the decision-making process through the development of self-regulation and local self-government. Transfer of functions unusual to the state in a competitive environment and self-regulatory organizations. The government will become compact due to the reduction of unnecessary state and excessive functions.

98. At the level of the rural district, village, city of regional significance, an independent budget of local self-government will be introduced. In the regional centers and cities of national importance, mechanisms will be in place for citizens to participate in the discussion of draft budgets [3].

In fulfillment of these demands, President NursultanNazarbayev published in the Kazakhstanskaya Pravda newspaper on January 6, 2016 the article "The Plan of the Nation - The Way to the Kazakhstan Dream" [4], the main theme of which is the implementation of institutional reforms aimed at creating the basis for future development our country.

In the chapter "The functions of the state - in a competitive environment and local self-government" written:

"A natural continuation of the reform at the central level should be the allocation of additional powers to the local self-government organs, which they will be transferred in three stages. We offer the basic of them:

Stage 1 (2016-2017):

- coordination of the candidatures submitted by the mayor of the district to the post of the mayor of the local level and initiation of the issue on the release of the mayor;

- discussion of topical issues of improvement and public order;

- control over the targeted use of land plots within populated areas;

- making proposals on the appointment of heads of state institutions of the local community;

- strengthening the tax potential of local self-government by transferring to them the right to levy an additional two taxes - on transport and land tax from legal entities;

Stage 2 (from 2018):

- step-by-step formation of the budget of local self-government, approved by the district maslikhat;

- coordination of the draft budget of the local community;

- issues of municipal property management of the local community;

- introduction of the budget only for administrative-territorial units with a population of more than 2 thousand people and approval by the district maslikhat;

- introduction of the institution of "municipal property of local self-government";

- study of the issue of consolidation of administrative-territorial units at the level of rural districts with the aim of increasing their potential.

Stage 3 (from 2020) will include:

- creation of a representative body of local self-government;

- introduction of an independent self-government budget in settlements with a population of less than 2 thousand people;

- introduction of procedures for considering proposals of citizens on local budget projects that affect socially significant issues.

The fulfillment of these requirements will increase the transparency of the decision-making process by state bodies and will promote the development of the system of local self-government.

The result of these measures will ultimately be the implementation of the policy of local self-government development, which in turn will lead to the creation of a system of interaction between the population, local government and state power, the effective functioning of which will ensure:

- Increasing the role of the population, its participation in the qualitative resolution of local issues;

- Increase the standard of living of the population in each locality;

- Increase of political stability in the region and the state as a whole.